ING said if the Fed holds rates on Wednesday the dollar is likely to come under
pressure and fall with oil. The dollar spot index was nearly flat for a fourth
session after appearing insulated from recent oil swings. On Wednesday the
60-day rolling correlation between the dollar spot index and Brent futures fell
to its lowest since late March. ING strategist Francesco Pesole said a Fed hold
should trigger precautionary dollar position unwinds, re-linking the currency to
oil’s downward signals.
